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10/17/2005
01:17 PM
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Analyst: Intel To Hit Q3 Forecast Despite IC Shortages

Intel is expected to stay on track to report sales of $9.9 billion in the third quarter, one analyst firm says, despite shortages in some notebook chips.

SAN JOSE, Calif. — Despite ongoing chipset shortages and price pressures in the server market, Intel Corp. is expected to meet analysts’ estimates when the chip giant reports its third-quarter results this week.

Intel is expected to earn $0.33 per share on sales of $9.9 billion in the third quarter, according to a report from Pacific Crest Securities Inc. (Portland, Ore.)

This compares to $0.33 on sales of $9.23 billion in the second quarter of 2005 and $0.30 on sales of $8.47 billion a year ago.

Notebook sales are strong, but Intel is still suffering from shortages of its 915 line of chipsets for this market, according to the report. Price pressures remain problematic for Intel’s server-based processor business due to competition from Advanced Micro Devices Inc., according to the report.

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